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14 days left before duty drawback benefit ends on textile industry, MSMEs demand continuation

Updated: Sep 16, 2017 06:14:56am
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14 days left before duty drawback benefit ends on textile industry, MSMEs demand continuation

New Delhi, Sept 16 (KNN) With the duty drawback benefit due to end by September 30th for the textile sector comprising of a fair share of the Micro, Small and Medium Enterprises (MSMEs) in the country, industry associations have reached out to the centre demanding an extension of the period post implementation of the Goods and Services Tax (GST) in the country.

The Southern India Mills Association (SIMA) in a press statement informed that the government is yet to take a final call.

SIMA Chairman P. Natraj said that the government is yet to give a mandate to the duty drawback committee to recommend the revised duty drawback rates.

He further informed that with the confusions surrounding the sector, the units are hesitating to take the export bookings at current rates.This hesitation is primarily because in case a unit takes an order at the present rate, by the time it is ready for delivery, there could be newer rates in place, therefore the traders as well as the units are in a fix situation.

Natraj asserted that the government must consider extending all the export benefits for the sector till the industry stands on its feet and returns to the phase of normalcy.

The Association also demanded a reduction on the tax rate on man-made fibres from a high 18 per cent to 12 per cent. (KNN/ DA)

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